FROM:
Administrative Services
SUBJECT:
Title
Sign Relocation and Ground Lease Agreements with Lamar Central Outdoor
End
RECOMMENDATION:
Recommendation
Approve lease agreements with Lamar Central Outdoor.
End
COUNCIL GOALS:
• Operate in a businesslike manner by improving services through the effective use of technology.
• Promote economic development by pursuing business attraction, retention, and expansion.
• Promote economic development by establishing a quick, consistent development process.
DISCUSSION:
In March 2013, the City of Fontana entered into a Billboard Relocation Agreement with Lamar Central Outdoor, LLC (Lamar) authorizing the relocation of certain existing outdoor advertising signs consistent with Section 3-177(3)(a) of the Fontana Municipal Code.
The Billboard Relocation Agreement was amended in August 2020 to allow for installation of up to 4 additional digital billboards provided Lamar removed the appropriate number of non-digital billboards within the City, a ratio stipulated to be 3:1 fixed signs to digital signs. Lamar has met the sign removal requirements by removing a total of 1867 square feet of static billboard area. Using the City stipulated ratio of 3:1 will allow Lamar to install a total of 4 digital billboards, each 442 square feet, totaling 1768 square feet of digital billboard area. Also approved in the August 2020 amendment were specific locations of these digital billboards and ground leases for the first three signs to be installed. Due to issues with a utility company, two of these locations had to be moved.
The relocated signs are:
• Sign proposed for Summit Ave. and Lytle Creek Road relocated to Cherry Ave. and South Highland Ave.
• Sign proposed for Citrus Ave. North of the 210 FWY relocated to Citrus Ave. and South Highland Ave.
The attached lease agreements, which are effectively identical except for the sign location, stipulate the terms of the agreements. In summary:
• The City will lease approximately 500 square feet of ground space.
• The signs will be approximately 442 square feet in sign area.
• There will be no competing signs within 2000 feet of these locations.
• Lease term is 20 years.
• Lease revenue will be the greater of $30,000 per year or 25% of gross advertising revenue, per sign.
• Payments will be monthly.
• Leased property may only be used for the stated purpose of erecting digital billboards.
In the year prior, Lamar Central Outdoor has been operating two signs in the City of Fontana. Payments have been consistent and on time. There has only been one month where the payment has exceeded the minimum of $30,000 annually.
Lamar Central Outdoor has been working with Fontana Planning Department to ensure the relocated sign locations are acceptable and meet all of the City’s permitting and use requirements.
FISCAL IMPACT:
A minimum cumulative revenue to the city of $60,000 per year, or $30,000 per sign and the possibility to exceed those numbers based on sign gross revenue.
MOTION:
Approve digital sign relocation and ground leases.